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QUESTION 5. Boston Brands produces 750 milliliter bottles of Fireball Cinnamon Whiskey at the Lewiston plant. The parent company is Sazerac Company (who bought former White Rock Distilleries from Bean Inc. in 2013). "... Boston Brands announced its $1 million expansion here in Lewiston creating 30 new jobs in addition to the 130 Maine people they already had employed ... Plant manager Andy Muschinski said the new investment will increase the Saratoga Street plant's capacity by 20% replacing an older production line with a more efficient one. It will also mean 50 new hires, some as soon as possible. ... (The plant) runs 24 hours a day, five days a week - with some weekends - to meet demand..." (adapted from a Sun Journal report) Part A. Explain whether this change by Boston Brands is a long run or short run change. Part B. How does specialization and division of labour effect the basic economic problem? Now, more recently: Lewiston manufacturer of Fireball Whisky to make hand sanitizer https://www.sunjournal.com/2020/03/28/lewiston-manufacturer-of-fireball-whisky-to-make-hand-sanitizer/ BY STAFF REPORT LEWISTON -" Sazerac Co., the owner of the Lewiston factory that manufactures Fireball Cinnamon Whisky, announced in a news statement Friday its 10 plants nationwide would begin making hand sanitizer to help with the coronavirus pandemic. Sazerac owns Boston Brands of Maine in Lewiston, responsible for making Fireball Cinnamon Whisky, Maine's top selling liquor in 2019. According to the statement, Sazerac will donate its product to health care, government, military, retail, distribution, airline, pharmacy, and banking industries. "We have seen the great need for hand sanitizer from industries across the board - many of these organizations are desperate, as supplies have dwindled," said Matt Maimone, Sazerac's chief operating officer. "We are adding production capacity to cope with the massive industrial demand." Maimone said Sazerac has already received requests for more than 5 million bottles of hand sanitizer. While nine of Sazerac's plants, including Boston Brands of Maine, have yet to begin making the sanitizer, one of its plants - Buffalo Trace Distillery in Franklin County, Kentucky, began on Friday. Every economic system faces the "basic economic problem" and struggles on how best to respond. We've discussed the mobilization of economic resources, the allocation of economic resources and the distribution of good and services. Explain the plant's decision to change production in terms of mobilization (or remobilization) of resources and allocation of economic resources. Incorporate Robert Heilbroner's definitions of these two term nswer. Explain the o rtunity costs involved in their decisioQUESTION 6. Source: Coyne, Andrew. "The real reason a Big Three bailout is a bad idea.\" Macleans, 1 December 2008: 16. Print. Time period: Great Recession, U.S. Economy. Part A. Create a list of economic vocabulary found in the excerpt below. \". . . however long a bill of indictment might be brought against Big Auto, that's not why we should refuse its demands for a bailout. This isn't about punishing Detroit for its past misdeeds. It isn't even about the auto industry, as such. It's about the economy as a whole, and how scarce resources are allocated between competing uses. Ultimately, it's about physics: the simple, inescapable reality that more of one thing means less of another . . . But the cost of (such) subsidies is not borne only or even primarily by the taxpayer, but by all those industries and firms that don't get bailed out. It's what economists call the opportunity costs: all the capital (financial) that subsidy traps in one industry is capital (financial) denied to other industries; all the sales diverted to one firm are sales diverted from its rivals; all the jobs 'created' in one part of the economy are jobs destroyed elsewhere.\" NOTE: subsidy = usually a financial payment given to support a business or firm Part B. What is the example used in this article to illustrate the basic economic problem? Part C. What is the basic economic problem? Part D. What model would you use to illustrate the basic economic problem? Draw the model, label the axes using the choices presented by this example